City to lease 40K sf in FiDi

Dept. of Youth and Community Service close to signing 20-year lease

TRD New York /
Sep.September 07, 2017 10:15 AM

123 William Street in Lower Manhattan

The city’s Department of Youth and Community Service is close to finalizing a 20-year lease for two floors at 123 William Street in the Financial District.

The agency plans to take 40,600 square feet on the 17th and 18th floors of the building, which is owned by American Realty Capital.

The lease starts at $2.1 million a year, or $51 per square foot, Commercial Observer reported. The rent increases every five years, hitting $2.6 million a year in years 15 through 20 of the lease. (That breaks down to $63 per square foot.)

American Realty Capital bought the 545,000-square-foot office building for $253 million in 2015.

Terms of the deal, which was handled by the city’s Department of Citywide Administrative Services, allow the agency to terminate the deal in the 10th or 15th year, with at least a year’s notice. DYCS is currently located at 2 Lafayette Street, and it’s unclear whether it will move or expand to 123 William.

City Hall is expected to sign off on the agreement next week at a public hearing. [CO] — E.B. Solomont

Related Articles

Breather CEO Bryan Murphy (Credit: LinkedIn and iStock)

Breather bloodbath: Flex-office startup fires 17% of staff

Stephen Levin, REBNY's Jim Whelan and Brad Lander (Credit: Getty Images)

The bill that won’t die: Will commercial rent control finally pass?

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill